Could someone please look at my figures?

Foyzone

I have read all the previous threads on this subject ( I know this is being done to death)but im still confused and would be really grateful if someone could just look at my figures

Im on a 6.18 fix until 2013 O/S Balance £79,901 16.5 years left approx 40% LTV

Early repayment Charges £2384.00

Thinking of swopping to Nationwides 5 year fix at 4.88 with £299 fee and adding the Charges to the loan

Is it worth it or should I stick as I am?

Many thanks in advance, Ive tried some calculators but although they show a saving not sure if Im calculating it correctly.

Foy

dimbo61

Try whatsthecost website.
£79901 at 6.18% over 16 years = £656.25 a month
£79901+£299+£2384 = £82584
£82584 at 4.88% over 16 years = £620.51 a month
And IF the rate stayed the same for the 16 years you would save £10k in interest.
BUT the amount owing after 4 years would be £66611 with the 6.18% fix
And the amount owing after 4 years would be £67528 with the 4.88% fix because you are borrowing the extra money !!

atlantis187

Hi Dimbo

Could also also please work mine out for me aswell

Smallish mortgage with A&L of £25K outstanding currently over 5 years tied into a 3 year fixed deal with 2 years to run at 6.24%. ERC is 3% of balance

Was thinking of going for one of their cheaper rate which is currently a 2 year fix at 3.69% at fee of 0.75%.

Would this be beneficial for me over the long run?

Thanks

feisty1

http://www.whatsthecost.com/

getmore4less

dimbo61 wrote: »

Try whatsthecost website.
£79901 at 6.18% over 16 years = £656.25 a month
£79901+£299+£2384 = £82584
£82584 at 4.88% over 16 years = £620.51 a month
And IF the rate stayed the same for the 16 years you would save £10k in interest.
BUT the amount owing after 4 years would be £66611 with the 6.18% fix
And the amount owing after 4 years would be £67528 with the 4.88% fix because you are borrowing the extra money !!

You have to use the same payment on both loans.

1. £79901 at 6.18% over 16 years = £656.25 a month
2. £82584 at 4.88% over 16 years = £620.51 a month

But the period we are looking at is till 2013 lets assume Feb. so 4 years

amount owing Feb 2013

1. £66,611.54
2. £67,528.80

so it looks like a bad choice

But the real answer is based on paying the £656.25pm.

£65,651.84 (note not 100% right due to the calculator using £656)


So actualy saves nearly £1k rather than costing nearly £1k

Note that at the 4 year point you are tied in for another year so depending on rates could lose or save more.

getmore4less

atlantis187 wrote: »

Hi Dimbo

Could also also please work mine out for me aswell

Smallish mortgage with A&L of £25K outstanding currently over 5 years tied into a 3 year fixed deal with 2 years to run at 6.24%. ERC is 3% of balance

Was thinking of going for one of their cheaper rate which is currently a 2 year fix at 3.69% at fee of 0.75%.

Would this be beneficial for me over the long run?

Thanks

1. £25000 2y fix at 6.24% 5y term £486.11pm
ERC £750
FEE £187.50
2. £25937.50 2y @ 3.67 5y term £473.83

end of two years
1. £15,922.11
2. £16,128.91
and 2. with the same payment as 1.
£15,826.21

What are the follow on rates since a remortage below £15k wth a new lender has issues.

With a mortgage this low a realy cheap tracker and over payments may be a option worth looking at and if you have some other money offsets are worth a look.

Foyzone

getmore4less wrote: »

You have to use the same payment on both loans.

1. £79901 at 6.18% over 16 years = £656.25 a month
2. £82584 at 4.88% over 16 years = £620.51 a month

But the period we are looking at is till 2013 lets assume Feb. so 4 years

amount owing Feb 2013

1. £66,611.54
2. £67,528.80

so it looks like a bad choice

But the real answer is based on paying the £656.25pm.

£65,651.84 (note not 100% right due to the calculator using £656)


So actualy saves nearly £1k rather than costing nearly £1k

Note that at the 4 year point you are tied in for another year so depending on rates could lose or save more.

Thank you both, I would be looking to pay as I am now, maybe a bit more if we can stretch to it. Just have to decide whether to jump now or hang fire in case of further falls in the rates.

Foy

dimbo61

Yes getmore4less is right if you keep the payment static and therefore overpay by £36 a month you would be £1000 approx better off after 4 years.
I have not used 5 years as your existing deal only has 4 years left.